Shares of DEAP Capital Management & Trust Plc have staged a dramatic rally on the Nigerian Exchange (NGX), rising more than 200 per cent month-to-date as of the trading session that ended on January 21, 2026. The surge has been driven by heavy trading activity and renewed investor optimism following a strategic partnership announcement.
The stock opened January at N1.89 and has since attracted strong buying interest, with more than 180 million shares traded as the price climbed to N5.90, edging closer to the N6.00 psychological level. By mid-session trading on January 22, shares were hovering around N6.00 as investors attempted to consolidate gains ahead of the market close.
Market momentum accelerated in mid-January after DEAP Capital executed a memorandum of understanding (MoU) with Banklink Africa’s Equity Fund II. The agreement focuses on financing minerals and metals projects across Africa, a development widely seen as a confidence booster for investors and a catalyst for the stock’s sharp upward move.
If the current trend is sustained through the end of the month, January 2026 could mark DEAP Capital’s strongest monthly performance in years, potentially eclipsing the 136 per cent return recorded in November 2023.
Company outlook and strategy
DEAP Capital has said the MoU is expected to reposition the company as a profitable investment banking boutique, while enhancing its capacity to mobilise capital for mineral and metals projects across African markets. The scope of the agreement also extends to projects linked to digitalisation, the energy transition, industrial manufacturing, and advanced technologies.
The company noted that the partnership has reinforced bullish sentiment that began building in late December 2025. Trading activity intensified further in the third week of January, during which approximately 117 million shares changed hands, accounting for a significant portion of total monthly volume.
Management also disclosed that ongoing strategic investment discussions could soon translate into binding agreements, raising expectations of a turnaround and a return to profitability.
Financial position and restructuring efforts
Despite the recent surge in share price, DEAP Capital’s latest financials highlight the scale of the challenges it is seeking to overcome. In its audited financial statement for the year ended September 2025, released in December, the company reported a pre-tax loss of N28.8 million.
The firm’s accumulated losses stood at N5.2 billion, effectively eroding shareholders’ funds and resulting in a negative equity position of N2.3 billion. As part of efforts to stabilise its balance sheet, DEAP Capital has continued to execute debt-to-equity conversions.
The company disclosed that N1.69 billion of outstanding obligations under its Managed Funds Account was converted to equity during the year ended September 30, 2017. This conversion, alongside other managed funds, is being executed at an issue price of N1.35 per share through the issuance of 1.499 billion ordinary shares of 50 kobo each.
The shares are to be allotted to consenting non-bank creditors, who were collectively owed N2.02 billion as of September 30, 2025. Investors appear to be encouraged by these restructuring steps, viewing them as a foundation for improved funding, stronger financial stability, and enhanced market confidence.
Ownership and debt settlement
DEAP Capital operates across fund management, capital markets, mortgage banking, and oil and gas services, offering portfolio management, financial advisory, and issuing house functions. The company remains largely controlled by the Asset Management Corporation of Nigeria (AMCON), which held a 16.6 per cent stake as of September 2025.
During the financial year, DEAP Capital also reached an agreement to settle a long-standing loan from Zenith Bank, originally obtained in 2011. The loan, which had grown to N1.88 billion by September 2024, was renegotiated to N400 million, with repayment scheduled for the next financial year.
While questions remain around the company’s fundamentals, the sharp rally in its share price suggests that investors are betting on strategic partnerships, balance-sheet clean-up, and the potential upside from Africa-focused minerals and infrastructure financing to drive a sustained turnaround.